Selling U and your bank card is frozen? The solution is here

Why does buying and selling USDT between individuals result in the mild consequence of a frozen bank card or the severe consequence of being classified as a money laundering crime? If an ordinary person has their bank card frozen due to buying and selling virtual currencies, how should they communicate with the police to both unfreeze the bank card and avoid criminal risks?

01 It was actually not difficult to unfreeze cards in the early years

As early as 2019 or even earlier, it was not uncommon for bank cards to be frozen due to virtual currency trading. As long as you can provide evidence related to the transaction, proving it is a normal buy-sell of virtual currency, the police usually will unfreeze the bank card.

Because at that time, the crowd in the cryptocurrency circle was relatively simple, although many people entered the market out of speculative psychology, the overall risks and criminal activities were relatively limited. Moreover, virtual currencies like Bitcoin, which have slower transaction speeds and larger price fluctuations, are also not suitable as tools for criminals to launder money.

As a result, at that time, the police's attitude towards virtual currency trading was relatively tolerant, and there was no strict requirement to compensate the complainant in order to unfreeze the bank card.

However, with the emergence of stablecoins, the situation has changed.

02 'Card Termination' action and regulatory upgrades

In October 2020, the state launched the 'Card Termination' action to crack down on the illegal buying and selling of 'two cards' (bank cards and phone cards). This is because 'two card' transactions are closely related to telecommunications fraud, cross-border gambling, and other criminal activities.

Against this backdrop, criminals began to turn to virtual currency trading. USDT, as a stablecoin pegged to the US dollar with strong liquidity, became the 'money laundering tool' for criminals.

In September 2021, the People's Bank of China and ten other ministries jointly issued a notice (on further preventing and dealing with the risks of virtual currency trading speculation), clearly stating the need to severely crack down on illegal financial activities related to virtual currencies.

With the tightening of policies and regulations, the judicial authorities' attitude towards virtual currency trading has gradually shifted from neutral to negative. This is also why more and more people find that their frozen bank cards cannot be unblocked after normal trading of virtual currencies.

03 Is your card really frozen innocently?

Before delving into solutions, ask yourself a few questions:

Do you understand the risks of buying and selling USDT?

Have you noticed the reasons for the abnormal trading prices?

When the other party's account is abnormal and asks for transfers through a third party, did you become alert?

Did you fulfill the necessary review and verification obligations during the transaction?

In many cases of frozen bank cards, indeed, many cardholders have been implicated due to careless transactions. However, there is also a considerable number of people who ignored potential risks in order to profit from price differences.

Normal investment returns are often proportional to risk, while some overly 'easy-to-earn' arbitrage opportunities often hide greater dangers behind them.

04 Increasingly severe crackdown

With the upgrading of new criminal methods such as 'score laundering', the judicial authorities' scrutiny of virtual currency trading is becoming increasingly strict. For case-handling authorities, it is naturally a key target to track individuals' bank accounts that provide funds for the true criminals, as it is difficult to trace them.

If your card is frozen, it is usually because your account funds are involved in a case reported by victims. Although this may be an incidental event for you, from the police's perspective, your transaction methods and behaviors may be regarded as suspicious of money laundering.

This is why the case-handling authorities may ask you for more evidence to prove the legality of your transactions.

05 Solutions after card freezing

Freezing your bank card does not mean you are identified as a criminal. In this situation, the most important thing is:

Eliminate personal criminal risks.

Promote the unfreezing of the bank card through effective communication.

Here are some feasible steps:

Proving innocence:

Provide complete transaction records: Show the details of the transaction with the other party, including transfer records, chat records, etc.

Prove that your income source is legal: provide stable and legal income proof to show that your funds are clear.

Explain the necessity of the transaction: Clarify the reasons and processes for the transaction, and try to demonstrate your rationality and legality.

Reasonable communication:

Avoid emotional confrontation: Do not get caught up in emotional expressions like 'Why was my card frozen?' Instead, use actual evidence to explain the legality of the transaction.

Explain the impact of the freeze: Detail how the freezing of the bank card affects your life and work, and express the desire to unfreeze it as soon as possible.

In practice, after eliminating your criminal risks, the police may help you issue relevant explanations, assist you in lifting the bank's risk control restrictions, and even coordinate compensation communication with the complainant.

06 Written at the end

In the face of the problem of bank card freezing, the most important thing is to remain calm and rational. By providing sufficient proof materials and actively communicating, the probability of solving the problem will be higher.

Of course, the best way to avoid falling into similar situations is:

Try to avoid transactions with accounts of unknown origin.

During the transaction process, be sure to fulfill your duty of careful verification.

Choose safe and legal trading methods, and avoid being tempted by small profits.

The risks of virtual currency trading cannot be ignored, but as long as you remain vigilant and operate reasonably and legally, most problems can be avoided.